BAE Systems’ $15 Billion Army Vehicle Program Hit by Covid Delay
- Initial deliveries aren’t expected until mid-August, Army says
- Vehicle’s delays are second major defense program hit by virus
The BAE Systems Armored Multiple-Purpose Vehicle.
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Initial deliveries of the U.S. Army’s $15 billion multipurpose combat vehicle built by BAE Systems Plc have slipped at least five months because of startup woes compounded by coronavirus impacts on the company and its subcontractors.
The first three production models in the planned 2,936-vehicle program were supposed to be delivered in March but are now delayed until mid-August following production challenges that included welding issues, parts availability, assembly line readiness and installation of advanced manufacturing capabilities. That was before Covid-19 caused further delays, the Army said in a statement.